Entertainment Network (India) CAPEX surged on 574% and Revenue surged on 12.2%
19-05-2016 • About Entertainment Network (India) (
$ENIL) • By InTwits
Entertainment Network (India) reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Entertainment Network (India) has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 5.3%.
- CAPEX is quite volatile: ₹274m in FY2016, ₹41m in FY2015, ₹30m in FY2014, ₹14m in FY2013, ₹27m in FY2012
- The company has highly profitable business model: ROIC is 12.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 12.2%. During the last 5 years Revenue growth topped in FY2015 at 14.0%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.4 pp from 82.4% to 86.8% in FY2016.
Net Income margin decreased on 3.9 pp from 24.2% to 20.3% in FY2016. During the last 5 years Net Income margin topped in FY2015 at 24.2%.
Investments (CAPEX, working capital and M&A)
In FY2016 Entertainment Network (India) had CAPEX/Revenue of 5.6%. Entertainment Network (India)'s CAPEX/Revenue increased on 5.2 pp from 0.43% in FY2013 to 5.6% in FY2016. Average CAPEX/Revenue for the last three years was 2.4%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2013 at 0.43% and was growing since that time.
Return on investment
The company operates at good ROIC (12.5%) and ROE (13.9%). ROIC decreased on 5.4 pp from 17.9% to 12.5% in FY2016. ROE decreased on 3.0 pp from 16.9% to 13.9% in FY2016. During FY2012-FY2016 ROE topped in FY2015 at 16.9%.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 1.7x. Net Debt / EBITDA jumped on 1.7x from -0.1x to 1.6x in FY2016. Debt jumped while cash surged on 28.1%.
Entertainment Network (India) has short term refinancing risk: cash is only 7.3% of short term debt.
Valuation and dividends
Entertainment Network (India)'s trades at EV/EBITDA 24.0x and P/E 32.1x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 29.7x with the industry average at 22.8x.
Financial and operational results
Entertainment Network (India) ($ENIL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,110 | 3,396 | 3,845 | 4,385 | 4,921 | 12.2% |
| EBITDA | 998 | 1,044 | 1,247 | 1,459 | 1,432 | -1.8% |
| Net Income | 561 | 683 | 836 | 1,060 | 1,000 | -5.7% |
Balance Sheet
|
|---|
| Cash | 376 | 53 | 138 | 143 | 183 | 28.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | 2,502 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 27 | 14 | 30 | 41 | 274 | 573.7% |
Ratios
|
|---|
| Revenue growth | -32.9% | 9.2% | 13.2% | 14.0% | 12.2% | |
| EBITDA growth | -1.8% | 4.6% | 19.4% | 17.0% | -1.8% | |
|
|---|
| EBITDA Margin | 32.1% | 30.8% | 32.4% | 33.3% | 29.1% | -4.2% |
| Net Income Margin | 18.0% | 20.1% | 21.7% | 24.2% | 20.3% | -3.9% |
| CAPEX, % of revenue | 0.9% | 0.4% | 0.8% | 0.9% | 5.6% | 4.6% |
|
|---|
| ROIC | 15.2% | 14.8% | 16.7% | 17.9% | 12.5% | -5.4% |
| ROE | 13.7% | 14.5% | 15.4% | 16.9% | 13.9% | -3.0% |
| Net Debt/EBITDA | -0.4x | -0.1x | -0.1x | -0.1x | 1.6x | 1.7x |
Peers in Broadcasting & Cable TV
Below we provide Entertainment Network (India) benchmarking against other companies in Broadcasting & Cable TV industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | - | 31.8% | 29.6% | 81.8% | -52.6% |
| Zee Media Corporation ($ZEEMEDIA) | 10.6% | -1.7% | 11.3% | 62.6% | - |
| Siti Cable Network ($SITICABLE) | 12.0% | 37.0% | 41.6% | 36.2% | - |
| Tv18 Broadcast ($TV18BRDCST) | - | 21.4% | 16.4% | 17.8% | 10.8% |
| Zee Entertainment Enterprises ($ZEEL) | - | 21.7% | 18.6% | 11.5% | 19.9% |
| |
|---|
| Median (9 companies) | 12.0% | 10.7% | 22.9% | 11.5% | -3.8% |
|---|
| Entertainment Network (India) ($ENIL) | - | 9.2% | 13.2% | 14.0% | 12.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 27.7% | 21.0% | 18.2% | 54.7% | 17.1% |
| Raj Television Network ($RAJTV) | - | - | - | 29.6% | - |
| Dish Tv India ($DISHTV) | 25.5% | 27.3% | 26.4% | 28.1% | - |
| Zee Entertainment Enterprises ($ZEEL) | 24.4% | 25.9% | 27.6% | 25.7% | 25.8% |
| Sea Tv Network ($SEATV) | - | - | - | 24.1% | - |
| |
|---|
| Median (11 companies) | 7.3% | 17.5% | 18.2% | 15.9% | 13.7% |
|---|
| Entertainment Network (India) ($ENIL) | 32.1% | 30.8% | 32.4% | 33.3% | 29.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Siti Cable Network ($SITICABLE) | 10.6% | 80.9% | 73.0% | 32.5% | - |
| Den Networks ($DEN) | 12.6% | 60.4% | 53.2% | 28.5% | - |
| Dish Tv India ($DISHTV) | 33.5% | 32.2% | 11.9% | 26.3% | - |
| Hinduja Ventures ($HINDUJAVEN) | 11.6% | 65.8% | 14.2% | 7.1% | 65.0% |
| Balaji Telefilms ($BALAJITELE) | 2.4% | 1.3% | 0.6% | 4.3% | 6.0% |
| |
|---|
| Median (9 companies) | 10.6% | 19.0% | 13.1% | 4.3% | 5.6% |
|---|
| Entertainment Network (India) ($ENIL) | 0.9% | 0.4% | 0.8% | 0.9% | 5.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 8.3% | 4.0% | 1.0% | 39.5% | 1.3% |
| Dish Tv India ($DISHTV) | -2.5% | -4.6% | 8.7% | 24.0% | - |
| Zee Entertainment Enterprises ($ZEEL) | 21.1% | 24.2% | 25.5% | 22.1% | 23.6% |
| Raj Television Network ($RAJTV) | 10.1% | 10.3% | 11.5% | 9.1% | - |
| Tv18 Broadcast ($TV18BRDCST) | -6.4% | 2.7% | 4.0% | 5.3% | 5.2% |
| |
|---|
| Median (12 companies) | 0.7% | 3.3% | 4.6% | 5.3% | 3.2% |
|---|
| Entertainment Network (India) ($ENIL) | 15.2% | 14.8% | 16.7% | 17.9% | 12.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zee Media Corporation ($ZEEMEDIA) | 0.2x | 0.3x | 3.0x | 10.1x | - |
| Siti Cable Network ($SITICABLE) | 56.0x | 9.5x | 5.6x | 6.7x | - |
| Den Networks ($DEN) | -0.5x | 2.4x | 1.7x | 6.0x | - |
| Dish Tv India ($DISHTV) | 2.1x | 2.6x | 2.0x | 1.4x | - |
| Tv18 Broadcast ($TV18BRDCST) | - | 2.4x | 0.9x | 1.3x | 1.4x |
| |
|---|
| Median (10 companies) | 0.2x | 2.4x | 1.7x | 1.2x | 0.4x |
|---|
| Entertainment Network (India) ($ENIL) | -0.4x | -0.1x | -0.1x | -0.1x | 1.6x |
